How to get a mortgage in Sweden as a foreigner: US guide

Sweden welcomes foreign property buyers, and there are zero legal barriers for Americans wanting to purchase Swedish real estate. But getting a mortgage in Sweden can be tricky.

Many Swedish banks hesitate to lend to foreigners, especially if you don't have strong Swedish connections.

You'll likely need a large down payment and need to get in touch with different banks, but despite these hurdles, getting a mortgage in Sweden as a foreigner is possible. Here's everything you need to know about the process and associated costs.

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Table of contents

Can US citizens get a mortgage in Sweden? What are the legal requirements to get a mortgage in Sweden as a non-resident? What types of mortgages are available in Sweden? What are Sweden's mortgage rates? How much do you need for a down payment for a Sweden mortgage? Buying property abroad? Send money the hassle-free way with Wise Things to consider before applying for a mortgage What documents are required to get a mortgage in Sweden? How to apply for a mortgage in Sweden: step by step How long does it take to get a mortgage approval in Sweden? Tips to get approved for a mortgage in Sweden Sweden mortgage renewal

Can US citizens get a mortgage in Sweden?

Yes, but be prepared to face a few challenges if you don't have strong ties to Sweden.

As an American, you can legally purchase Swedish property without special permits or restrictions. But your chances of mortgage approval largely depend on your connection to Sweden.

You may improve your prospects if you have:¹
a residence permit a job with a Swedish employer family in Sweden a Swedish personal identity number (personnummer) a registration in the Swedish population register

The stronger your Swedish connections, the more likely banks will view you as a reliable borrower.

What are the legal requirements to get a mortgage in Sweden as a non-resident?

There are no special legal requirements to buy property or apply for a mortgage in Sweden as a non-resident. Americans face the same property laws as Swedish citizens. Legally, you're in the clear.

However, banks are free to set their own lending policies. Many are reluctant to take on foreign borrowers because they see them as higher risk. Without a Swedish credit history or permanent local ties, mortgage lenders worry about their ability to recover funds if you stop making your payments.

To get approved, you'll likely need to show proof of income from stable sources, evidence of your connection to Sweden (if any), and the funds to pay a hefty down payment.

💡 Learn more about buying property abroad as an American in our full guide.

What types of mortgages are available in Sweden?

You have a few different options when borrowing for Swedish property.

• Variable-rate mortgage: This is a popular choice in Sweden, with your interest rate adjusting based on market conditions — you may have lower initial rates, but the downside is uncertainty because the payments can increase or decrease

• Fixed-rate mortgage: This mortgage type locks in your interest rate for a set period, such as 10 years — you'll pay the same amount monthly throughout this term, so it's easier to budget, but usually at a higher initial rate than variable options

• Interest-only mortgage: This option allows you to pay only the interest for a fixed period. After this period ends, you must start repaying the principal — you'll have lower initial payments, but you won't be building equity during the interest-only phase

• Blended mortgage: A popular Swedish approach where you split your loan between variable and fixed rates — for example, you might have 50% at a variable rate and 50% at a 5-year fixed rate

Once you find a Swedish bank willing to approve you for a mortgage, their team can advise you on the pros and cons of each mortgage type.

If getting approved for a mortgage in Sweden turns out to be too complicated, you can also consider working with an international mortgage lender.

What are Sweden's mortgage rates?

Swedish mortgage rates fluctuate. As of the second quarter of 2024, the average interest rate was 4.53%, but this varies based on your loan type, credit profile, and bank.²

A few Swedish financial institutions have also made forecasts about future rates. For example, SBAB, Swedbank, and Länsförsäkringar Bank predict variable mortgage rates will drop to between 2.85% and 3.20% by December 2025 and stay similar through 2026.³

If you're a foreigner, and especially if you're a non-resident, you may have to pay higher rates than Swedish citizens.

How much do you need for a down payment for a Sweden mortgage?

Swedish banks typically require all borrowers to make a minimum down payment of 15% of the property's purchase price. The maximum loan-to-value ratio you'll generally find is 85%.¹

As an American, you may have to pay a higher down payment. For foreigners buying property in Europe, deposits between 20% and 40% or even 50% are relatively common. That said, having strong ties to Sweden might qualify you for a lower down payment.

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Things to consider before applying for a mortgage

Getting a mortgage in Sweden as a foreigner is possible but not always straightforward. Here's what to consider.

Choose between banks and brokers

Most Swedes work directly with major banks like SEB or Swedbank. As a foreigner, however, a mortgage broker might be worth their fee. They understand which banks are currently foreigner-friendly and can navigate Swedish banking procedures on your behalf.

Build Swedish credit history if possible

Sweden doesn't use the FICO system like the US. If you spend time in Sweden before buying, try establishing a Swedish credit history by opening a bank account and using Swedish credit services.

Even a short credit history can improve your chances of getting approved.

Save for the down payment

Swedish banks typically require a minimum down payment of at least 15% of the property's purchase price, but as a foreigner, you may need to put down more.¹

The down payment can be as high as 30% or 40%. Plus, you're more likely to get approved with a larger down payment.

Prepare for the language barrier

Financial professionals at the banks might speak English, but mortgage documents typically come in Swedish. Some banks provide English translations, but legally binding documents will most likely be in Swedish.

You may need to budget for translation services or a bilingual lawyer.

Understand residency requirements

Buying property in Sweden doesn't give you residency rights.

If you don't have a visa or permanent residency already, you'll only be allowed to stay in Sweden for 90 days within any 180 days.⁴

If you plan to live in your Swedish property, you'll need to figure out a way to move to Sweden with an appropriate visa or permanent residency separately from your property purchase.

Additional costs

In addition to the down payment, you'll also have to cover extra costs that come with a property purchase. These expenses must be paid up front and aren't typically included in your mortgage.

Expense	Amount⁵
Stamp duty	1.5 to 4.25% of the purchase price
Registration fee	Fixed amount of 825 SEK (about 85 USD)
Legal fees	Typically 5,000 to 15,000 SEK (about 500 to 1,500 USD)
Property tax	0.2 to 2.8% of the property’s cadastral value

These additional costs can add up quickly, so make sure to save for them along with the down payment.

What documents are required to get a mortgage in Sweden?

Your bank will tell you their exact requirements because they can vary, but generally speaking, you should be prepared to show:

• Valid identification, typically your passport
• Proof of income, such as recent pay stubs and tax returns
• Employment verification confirming your position, salary, and employment duration
• Bank statements showing your financial history and savings
• Credit report, ideally from Sweden
• Residency status, including residency permits, visas, or documentation of your ties to Sweden
• Down payment proof to show that you have the funds available

If you're self-employed, prepare for additional scrutiny. You'll likely need to show income going back a much longer time to prove that you're financially stable.

How to apply for a mortgage in Sweden: step by step

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1. Research different banks and lenders

Contact multiple Swedish banks to learn about their mortgage options for foreigners. Major banks like SEB, Swedbank, and Handelsbanken have different policies, rates, and requirements, so it's worth exploring all options.

2. Prepare your documents

Gather your income proof, tax returns, bank statements, identification, and any other documents that your bank requests.

3. Submit a loan promise application

Apply for a loan promise to understand how much you might be able to borrow. This preliminary assessment evaluates your financial situation, but it doesn't tie you to a specific property.

4. Compare loan promise offers

If you receive multiple loan promises, compare their terms and see which one gives you better interest rates and loan amounts.

5. Find a property

Once you know your budget, search for a property that matches it. You'll typically need to include specific property details in your formal mortgage application.

6. Submit your formal mortgage application

Submit your complete mortgage application to your chosen bank along with all the required documents. You'll also typically need the property's details, purchase agreement, and inspection report.

7. Property valuation

The bank will conduct a property valuation to confirm the market value. This helps determine the final loan-to-value ratio they'll offer.

8. Receive loan offer

If approved, the bank will send a formal loan offer detailing the amount, interest rate, repayment terms, and any other conditions. Make sure to carefully review everything and consult with a lawyer if you have any questions.

9. Accept and sign the loan documents

This finalizes your mortgage agreement with the bank. The bank will then release the funds for your property purchase!

How long does it take to get a mortgage approval in Sweden?

It depends on the bank and your specific circumstances. It can usually take 1 to 2 months, but complex cases can stretch out more. To improve your chances of a smoother process, respond quickly to any requests for additional information from your bank.

Tips to get approved for a mortgage in Sweden

Getting approved for a Swedish mortgage as an American requires you to jump through some hoops, but it can be done with the right approach. Here are a few tips:

• Establish some connection to Sweden: Having family in Sweden, a job offer from a Swedish company, or Swedish credit history improves your chances

• Offer a larger down payment: 15% is standard for Swedes, but offering 30% or even 40% as a foreigner shows financial stability and reduces the bank's risk¹

• Demonstrate income stability: If you're changing jobs or careers, try to secure your mortgage before making the switch

• Try multiple banks: If you get rejected by one bank, don't give up; submit your documents for pre-approval to other lenders

Each bank makes independent decisions, so a rejection from one doesn't mean you can't get approved elsewhere. You can also investigate different options beyond just Sweden, such as getting an overseas mortgage from your US bank.

Sweden mortgage renewal

Swedish mortgages typically have shorter fixed-interest periods compared to the 30-year fixed mortgages common in the US. When your fixed period ends, you'll need to renew or refinance your mortgage.

You can either stay with your current lender at their new offered rate or switch to a different bank for better terms. Renewals are usually straightforward if you've maintained a good payment history.

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Getting a mortgage in Sweden as a foreigner is easier if you have ties to the country and can pay a larger down payment. The standard down payment for a Swedish mortgage is 15%, but you can improve your chances of approval by offering 20%, 30%, or even 40% if you can.

You should also make sure you're thinking about residency if you want to live in Sweden long-term. Buying property or having a mortgage there doesn't entitle you to any residency rights, so you'll need to investigate appropriate visas or a path to permanent residency.

If you're splitting your time between the US and Sweden, Wise makes it easier to move your money internationally with low fees. It's fast, simple, and secure, even for large transfers like your down payment.

Sources

1. LoansSweden - Mortgage Loan Sweden
2. Statista - Average mortgage interest rate in Sweden from 3rd quarter 2016 to 2nd quarter 2024
3. Statsskuld - Current Development of Mortgage Interest Rates in Sweden
4. US Department of State - Sweden
5. Investropa - Buying property in Sweden as a foreigner

Sources checked 05/14/2025